The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-05-30
HETTY GREEN'S GEIP.
Confusion in the Plans for Recognizing
Houston and Texas Central.

houston ana central.
FROM the NeU York Herald.
Mrs. Hetty Green, the woman with a
terrible grip on many millions which she
wields as a club, has lifted her arm to strike
deadly blow
C. p Huntington, whose comprehensive
and powerful grasp takes in thousands upon
thousands of miles of railroads, from ocean
TO ocean, with branches everywhere, is the
object of her attack.
1t is gianteSS against giant.
She wants him either 10 let go his hold on
the Houston and Texas Central railroad
with its splendid land grant rights, or else
pay her a grand sum to leave him to his
purposes.
The facts leading up to the present crisis
may be briefly stated.
HUNTINGToN'S SCHEME.
Mr.. Huntington some years ago decided
that the Houston and Texas Central rail-
road, which runs through a rich country
and has q land grant of 0,240 acres for every
mile of road constructed, would be a good
property to hold. 1t would help his South
ern Pacific and other less productive roads
out of their difficulties. So he went to work
buying up the stock and finally
got control at, it is said, a cost
of about SO share. But the funded
debt of the company was very large, and to
make the stock valuable it would have to
be reduced. On Jan. 1, 1855, the company
defaulted, and ON Feb. %, 1885, in suit
brought by the Southern Development Com
pany, which is another name for Hunting
ton and associates, receivers were appointed
to take charge of the road. This suit was
brought for 100000 advanced to pay in
terest, but on May 20, 1856, it was dis
missed, and new receivers were appointed
on the suit of the first mortgage bond
holders
REAR BoNDHOLDERS TO THE FRONT.
But Mr. Huntington was not permitted to
have entirely his own way. There were
So, 446 600 of general mortgage bonds out
standing, and the owners thereof insisted on
saving something for themselves. Finally
the best Mr.. Huntington could do was to sub
init TO an arrangement by which these bond
holders wonld purchase the property. They
appointed the following as committee Of
purchase and reorganization: Henry
Bulge, of Hallagarten e. Co.; William
/ Mertens. OF Van Hoffman & Co.; Thomas L.
Manson, Jr., of Chas. Head & Co; Frederick
Taylor, of Frederick Taylor & Co.; H K.
POmroy, of Pomroy Brothers; Charles Rob
inson Smith, and William J. Quinlan, Jr.,
of the Chemical National Bank. Mrs
Hetty Green owns 81, 000,0 600 of the bonds
She agreed that when 81 $50, 600 of the
bonds had been deposited with the Farmers
Loan and Trust Company she would de-
post her million also and leave the pur-
chase of the property and reorganization OF
the company to the committee. Mr.. Quin-
Ian signed the agreement for her.
MRS. GREEN DRAWS BACK.
Yesterday was the last day for depositing
the bonds
Two million, one hundred and twenty
I1II a. I
and more were on the way from California.
But Mrs. Hetty Green did not deposit hers
On the contrary, she refused to go into the
syndicate because she wanted better terms
The plan agreed upon by the committee was
that the general or third mortgage bonds at
ter foreclosure and sale were to bear per
cent. interest, instead Of 6 per cent, with de-
bentures at per cent. for past due cou-
pons; the second mortgage bonds to bear 6
per cent. interest, instead of 8, with like de-
| bentures and the first mortgage bonds,
which fall due in 1891, to bear 5 per cent.
| and be extended fifty years. The interest
| on the first mortgage bonds was to be paid
| in cash. Under this scheme Mr.. Hunting
| toms stock rose to Al, showing a gain OF
| aboutSl above the price he paid.
When Mrs. Green lifted her aim against
! the scheme yesterday Huntington's stock
| dropped to "a, and the bondholders were
MRS. GREEN MUST PAY
But the members of the committee who
were seen by a reporter claimed that Mrs
Green assumed her warlike attitude too late
Said one of them: 1--WE have a clear major
| ity-nearly two-thirds in fact-and Mrs
| Hetty Green can do nothing with her mil
| lion.n
But she has other millions in cash Car
she not bid against you at the sale."
''Oh, yes. She can buy the whole road il
she wants to bid enough"
Suppose she relents and agrees after all
to come in, will you let her inr'
mot with any special privileges, that is
certain. She agreed to come liz like the
rest, and at the last moment she has held
back to be treated with separately.
| What do you think of it, No sir; she will
have tc pay up like man."
The agreement declares that the commit
| tee may impose additional terms on any
| holder wishing to come in after the time tc
| sign it has expired.
WHY MRS GREEN is ANGRY
Mrs. Green's representatives claim that
| the property is very valuable, and can be
made to pay far better returns on the bonds
than the plan of reorganization would Sc
cure. They assert that Mr.. Huntington's
| scheme is to bleed the Houston and Texas
| Central road through his Southern Pacific
and other lines, and to make his Houston
| and Texas Central stock valuable at the ex-
| pense of the bondholders They say she owns
not only third mortgage bonds, but large
blocks of the other and better bonds of the
company, and that she intends to have her
rights to the last dollar
Mrs. Green treats Mr.. Huntington and the
committee as if the We're one in interest, but
members of the committee do not acknowl.
| edge any privity between themselves and
the Southern Pacific magnate.
If Mrs Green takes any legal steps in the
matter it will be through her counsel,
Messrs. Sullivan s. Cromwell They re.
fused yesterday to give any intimation what
her plan of procedure would be.
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